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The impact of bundling index insurance with credit and input vouchers: Experimental evidence from Ethiopia

Temesgen K. Belissa, Robert Lensink and Ana Marr

Journal of Economic Behavior & Organization, 2025, vol. 234, issue C

Abstract: This study assesses the uptake and impact of bundling index insurance with credit and input vouchers through a randomized control trial experiment. Smallholder farmers in Ethiopia are randomly assigned to a control group and three treatment arms, namely: (1) stand-alone index insurance with upfront premium payment, (2) stand-alone index insurance with delayed premium payment, (3) bundled index insurance with credit and delayed premium payment, or (4) bundled index insurance with credit and input vouchers with delayed premium payment. Distinguishing itself from previous studies, our research specifically isolates the impact of bundling from that of delayed premiums. The results highlight the crucial role of the bundled aspect (i.e., credit and inputs), not only in increasing uptake but also in fostering farming investments and productivity.

Keywords: Index insurance; Bundled index insurance with credit and inputs; Randomized control trial; Consumption smoothing; Investment in agricultural inputs (search for similar items in EconPapers)
JEL-codes: D92 G22 O44 Q41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:234:y:2025:i:c:s0167268125001325

DOI: 10.1016/j.jebo.2025.107013

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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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